Back-to-school season naturally puts education front of mind. For parents and grandparents, it can also be a useful reminder to think further ahead.
For many families, education is one of several significant investments they expect to make in the next generation. The question is often less about whether that support will be provided and more about how it should be structured.
Tuition is only one part of the equation. Housing, transportation, technology, professional fees, international study and graduate programs can all influence the eventual cost.
This makes education funding as much a question of capital allocation as it is of saving.
Define the commitment.
For the 2025/2026 academic year, average undergraduate tuition for Canadian students is $7,734 nationally and $8,958 in Ontario.
Those figures provide a useful reference point, but the eventual commitment can vary considerably depending on the path a student takes.
Some families may choose to fund tuition and living expenses throughout an undergraduate degree. Others may also plan for graduate school, professional programs, international study or support beyond graduation.
For grandparents, education may also form part of a broader approach to intergenerational wealth transfer.
Defining that intention early helps determine how much capital should be earmarked for education and how that capital should be structured over time.
Use the RESP strategically.
In 2026, the lifetime contribution limit is $50,000 per beneficiary. The basic Canada Education Savings Grant provides 20% on the first $2,500 of eligible annual contributions, for up to $500 per year, with a lifetime CESG maximum of $7,200.
That makes the RESP an efficient place to capture available government incentives and build tax-deferred education capital over time.
For families with substantial resources, an equally important consideration is how the RESP fits within the family’s broader capital structure. Non-registered investments, corporate assets, trusts and household cash flow may each have a role to play, depending on the family’s objectives, liquidity needs and approach to intergenerational wealth transfer.
The Registered Education Savings Plan remains one of the most useful tools available to Canadian families. The strategy lies in deciding which assets should fund which costs, when those assets should be accessed and how education support fits within the family’s overall financial picture.
Coordinate education funding across the family.
Education funding may involve more than one account or family member, particularly when parents, grandparents or other relatives choose to provide support.
Multiple family members may establish RESPs for the same beneficiary, although the $50,000 lifetime contribution limit applies across all plans.
This makes coordination important.
A clear understanding of who is contributing, how RESP room is being used and what other assets may be directed toward education can help ensure the overall structure remains efficient.
The approach will depend on each family’s circumstances, priorities and resources.
Think ahead to the withdrawal years.
The way education assets are eventually accessed also deserves attention.
RESP contributions and Educational Assistance Payments are treated differently for tax purposes. Original contributions can generally be withdrawn tax-free, while grants and investment earnings are generally taxable to the student.
For families with multiple available sources of capital, the order and timing of withdrawals can become part of the strategy.
A student’s education may be funded through a combination of RESP withdrawals, family investment assets and other designated capital. The mix may also change from undergraduate studies to graduate or professional programs.
Planning for those years in advance can create greater flexibility when the funds are ultimately needed.
Create optionality.
The strongest education strategies create choice.
They can give the next generation the freedom to attend school in another city, pursue a specialized program, continue into graduate studies or take advantage of an opportunity that was difficult to anticipate years earlier.
At RaeLipskie, we help families consider how education fits within their larger financial picture, including how capital is allocated, how different accounts work together and how support can be structured across generations.
To discuss how education funding fits within your family’s broader wealth strategy, connect with a RaeLipskie Portfolio Manager at raelipskie.com/contact.